Oceanside moves closer to allowing retail cannabis storefronts
June 30, 2025
Oceanside moves closer to allowing retail cannabis storefronts
City officials estimate $1.3 million in added tax revenue from the initial four retail cannabis stores.
The Oceanside City Council is working to change city regulations to allow retail cannabis storefronts.
The city council recently approved a staff recommendation by a 3-2 vote to introduce an ordinance that would amend the city’s municipal code and zoning regulations to permit up to four retail cannabis storefronts.
WATCH HERE“I’m stoked on it,” Oceanside resident Luke Carter told NBC 7. “Usually, I have to go to Vista, so if I don’t have to go further, that’s sick.”
Keeping marijuana money within city limits is a big part of this change. Fellow North County city Vista makes roughly $7 million annually in cannabis tax revenue. Oceanside city officials estimate $1.3 million in added tax revenue from the initial four retail cannabis stores.
SIGN UP “For us that go to Vista all the time, why are we giving Vista our tax money?” Carter asked. “Why not put it to good use in the beautiful city we love.”
According to Oceanside City Manager Jonathon Borrego, that’s the plan.
“Our city council has made it quite clear that they want that revenue first and foremost go to education, towards the youth to discourage them from illegal drug use down the road and support of other youth programs down the road,” Borrego said.
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“The cannabis industry here in Oceanside is going to thrive,” said Karen Hannawi, general manager of Med Leaf, one of only two cannabis delivery services that are licensed in Oceanside. “It’s going to grow our business exponentially.”
Med Leaf has already started the cannabis storefront application process with the city. The process includes background checks, security plans, proof of capitalization, and interviews with city officials and police. To qualify for a license, applicants must score at least 90% on the evaluation criteria.
“It is a lengthy process, yes, but it’s good to make sure you’re vetting people that are going to be here in our city,” Hannawi, who is also an Oceanside native, told NBC 7.
“It’s a very thorough vetting process, which will start with our Consulted Cannabis, which will do the first round of interviews,” Borrego said. “Then my office, the city managers office, will do the next round of interviews, then make a recommendation to council.”
Still to be finalized is how close cannabis storefronts can be to residential areas and schools. The proximity to schools is something local citizens are concerned about.
“I don’t think we should have liquor stores close to kids’ schools either,” Oceanside resident Luke Russum said. “I think it’s important where the cannabis stores are put.”
Borrego says, “We will not allow any of these businesses to be within 1,000 feet of high schools or junior highs, assuming city council accepts our recommendation.”
The city of Oceanside hopes to finalize the ordinance and licensing program in August.
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